Monday, 19 November 2012

Taxing the Marlins ex pats

I have stayed silent on the recent Marlins debacle even if it is happening in my backyard (and on my tax dollars), mainly because I already knew the stadium was a bad deal and that the Marlins are competing for the title of worst organization in all of sports by hitting the trifecta of incompetence, arrogance, and contempt.

But, via TaxProf's Paul Caron, here is a different legal take on the trade from the Wall Street Journal: the tax hit that the five traded players are going to take by leaving Florida (which has no state income tax) and going to Ontario (which just enacted a tax increase on high-earners). The author estimates the five players will lose about $ 8.4 million in lost income, based on certain assumptions and offset by certain tax benefits (they actually earn a foreign tax credit on their U.S. returns).

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